Apple clears another regulatory hurdle for Chinese iPhone

Apple has applied for a license to use the iPhone on wireless networks in …

Apple has jumped over one more of the numerous hurdles it faces before it can offer its iconic iPhone to customers in China. One analyst for Wedge Partners claims that Apple has applied for a network access license, one of the final steps in the regulatory process for the iPhone to be "sanctioned" for use in China.

The application follows Apple being granted a five-year approval for the iPhone as wireless transmitting equipment early last month. That approval is useless, according to China Wireless News, without a network access license (or mobile phone network testing license—it's not clear if they refer to the same thing), because both are required for an official OK from China's Ministry of Industry and Information Technology.

Wedge Partners analyst Matt Mathison noted that the device described in the application appears to use GSM, as opposed to the TD-SCDMA standard that is more common in China. Further, it appears that the iPhone also will not include WiFi capabilities—it was apparently a major stumbling block, as Chinese regulations forbid cell phones with WiFi capabilities. "Apple was hellbent on having the iPhone be WiFi-enabled," Mathison told BusinessWeek. "The Chinese government has been just as adamant that it not be."

Apple still needs to strike a deal with a Chinese carrier. If the iPhone will indeed use GSM (as all other iPhones do), then it seems even more likely that Apple will be partnering with China Unicom, which recently launched a GSM-based 3G network. Some issues still remain, however. China Unicom has been reportedly asking Apple for a different default set of applications "that Chinese users are more familiar with." Also, it appears that another Chinese company may have a trademark on the word "i-phone" in connection with mobile handsets, which could result in a legal headache for Apple.

Apple has been eyeing the burgeoning—and potentially huge—Chinese market for its iPhone for some time. While there are reports of as many as 1 million unlocked devices being used in the country already, Apple and its potential customers would no doubt be interested in having an officially sanctioned 3G device available. Mathison believes a quick approval for Apple's application could mean that the iPhone might see an official launch by early 2010—assuming the other issues are worked out as well.